Singapore Airlines (SIA) has seen its net profits increase by 78 per cent during the second quarter of 2013.
During the six months to September 30th, the group saw its net profits reach $128.6 million (£80.9 million).
SIA said that the reason for the jump in profits was due to selling airlines and gaining a higher share of revenue from associated and joint venture companies. Among the sales it made gains on was its stake of Virgin Atlantic to Delta Airlines.
However, the company is facing tough competition on its medium and long haul routes from other Asian airlines, such as Emirates Airline, Malaysian Airline System Bhd and Cathay Pacific Airways Ltd.
Premium-class travel has been hit by cuts in business travel spend as companies turn to budget airlines such as AirAsia Bhd and Lion Air.
Additionally, a rising Singaporean dollar has impacted on yields as well as its promotional activities.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.